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TCPL Packaging Ltd
NSE: TCPLPACK BSE: 523301 INE822C01015 Industrials Industrial Products 🔎 Screen
₹3,533 Cr
Market Cap
30.7
P/E
1.31
PEG
17.9%
ROCE
15.5%
ROE
0.83
D/E
16.0%
OPM
-12.2%
% from 52W High
84
α RS
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About

Incorporated in 1987, TCPL Packaging Ltd manufactures paperboard-based packaging materials and flexible packaging products

✓ Strengths 1
  • Company has been maintaining a healthy dividend payout of 20.8%
! Concerns

No concerns data yet.

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Mixed quarter: revenue grew 9.2% YoY and EBITDA margin held near 17.4%, but PAT plunged 42.9% due to exceptional items, higher tax, and depreciation; export markets were subdued. quarter Investor Presentation One-Pager? Mar 2026
Revenue
₹465.2 Cr
+9.2% YoY (consolidated total income)
EBITDA Margin
17.4%
Down 42 bps YoY; raw material cost pressure
PAT
₹21.7 Cr
Down 42.9% YoY; hit by exceptional items of ₹2.22 Cr
Cash PAT
₹60.8 Cr
Up 5.0% YoY; depreciation up 11.8%
What Went Right
  • Consolidated total income rose 9.2% YoY to ₹465.2 Cr, driven by resilient domestic demand.
  • Flexible packaging business delivered strong capacity utilisation across plants; last commissioned line operating optimally.
  • Chennai Greenfield paperboard facility scaling up with encouraging customer traction.
  • EcoVadis Bronze Medal in debut assessment (top 35% globally) and UNGC commitment strengthen ESG positioning.
  • Cash profit grew 5.0% YoY to ₹60.8 Cr, supported by stable EBITDA generation.
What to Watch
  • PAT crashed 42.9% YoY to ₹21.7 Cr due to a ₹2.22 Cr exceptional item and a jump in tax expense (₹18.5 Cr vs ₹1.5 Cr in Q4 FY25).
  • EBITDA margin contracted 42 bps to 17.4% as raw material costs rose 14% YoY and pricing pass-through lagged.
  • Exports were impacted by geopolitical disruptions in the Middle East, weighing on overall revenue mix.
  • FY26 PAT fell 31.6% to ₹97.8 Cr; full-year finance costs surged 36.2% to ₹79.4 Cr, eroding profitability.
  • Exceptional items for FY26 totalled ₹13.79 Cr, a large drag on reported net income.
Investor Lens
This quarter exposed the gap between revenue growth and earnings quality. Despite a 9.2% revenue increase, PAT collapsed 42.9% because of exceptional items, higher taxes, and a 14% spike in raw material costs that squeezed margins 42 bps. The company acknowledges the cost pass-through lag and is banking on calibrated pricing actions and product mix improvements to restore margins. The 36.2% full-year finance cost jump is a concern, though net debt of ₹554.7 Cr against net worth of ₹1,293.5 Cr keeps leverage manageable. The export headwind from Middle East disruptions is temporary, with management expecting normalisation. The domestic volume story remains intact, and ESG credentials are improving, but near-term profitability will depend on how quickly costs are recovered and whether the exceptional charges recur. Next quarter's margin trajectory and export momentum will be critical to watch.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG PAT jumps 65% YoY to ₹38 Cr on 16% revenue growth
Revenue
Revenue grew 15.9% YoY to ₹474.0 Cr, with a healthy 8.7% sequential increase over Mar 2026. Operating profit rose 14.1% YoY, indicating broad-based growth.
Profitability
Net profit surged 65.2% YoY to ₹38.0 Cr, with EPS jumping to ₹41.35 from ₹24.98. PAT growth outpaced revenue significantly, aided by operating leverage and a 25% tax rate.
Margins
Operating margin held steady at 17% YoY, but improved from 15% sequentially. Cost control and better product mix likely supported margin stability despite revenue growth.
Balance Sheet
Debt/equity ratio stands at 0.83, reflecting moderate leverage. Interest cost of ₹12.0 Cr is notable but manageable given operating profits.
Key Risks
The stock trades at a high PE of 40.85, leaving little room for disappointment. Interest expense of ₹12 Cr and D/E of 0.83 need monitoring. OPM remaining flat YoY despite 16% revenue growth suggests limited margin expansion.
Outlook
Strong revenue momentum and margin stability could drive continued earnings growth. However, high valuation and leverage warrant caution.
Generated by AI · Jun 2026 results · Not investment advice
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